EAST African Community (EAC) partner states are bringing in Singapore’s technology to facilitate digital trade document flows.

It is in line with the work to improve the EAC’s Single Customs Territory (SCT) that goes on with the selection of a Singaporean technology provider to design the right system for the bloc.

The EAC that has seen its new Secretary General, Dr Peter Mathuki take over office, launched the single customs territory in 2013. Dr Mathuki has taken over from Ambassador Liberat Mfumukeko, whose term has expired.

SCT is designed to ease trade between EAC member states and trim costs by clearing shipments at their first port of arrival or departure, easing the otherwise inefficient flows of customs information that have hindered its effectiveness.

Singapore’s GUUD Company, through its subsidiary -vCargo Cloud Kenya, won a tender to create a centralised platform for the SCT that will allow customs documentation to be easily shared by member states’ authorities.

“As the official technology partner for the project, GUUD will now embark on creating a centralised system that will facilitate trade document flows within the region for all intra-trade, transit, as well as imports and exports,” the company said in its statement.

GUUD, a group of companies launched last year by Information Communication Technology (ICT) provider – vCargo Cloud, said the platform is expected to go live in early next year.

EAC Customs Information Systems Expert, Mr Gabriel Kinu said the solution will integrate mechanisms such as cargo scanners and smart gates across the trading bloc.

GUUD uses the power of technology to make global trade simpler, more efficient and inclusive.

It demystifies procedures and innovates compliance processes. It also makes it easier to connect with the perfect suppliers, financing and logistics partners.

The Senior Director of Trade Development Agency Trademark East Africa, Mr Alban Odhiambo, noted that a central documentation platform will not only enhance the efficiency and effectiveness of trade systems at national and regional level, but also improve trust, transparency and accountability in trade and transport transactions.

“With greater visibility and the capabilities to trace transactions across borders, this platform will be critical in the realization of a digital corridor for trade and transport,” he said.

STC is one of seven EAC’s priorities from 2017 to this year. It involves interconnectivity of customs systems to facilitate seamless flow of information between customs stations and a payment system to manage transfers of revenues between EAC partner states.

The General Manager of vCargo Cloud Kenya and GUUD Africa, Mr George Chan, told the Global Trade Review (GTR) that inefficient information reconciliation between the EAC members has habitually contributed to high inefficiencies and high costs of doing business.

“But with the new SCT solution, where a trader usually has to make multiple customs declarations, they now only need to submit one customs declaration at the destination country, with taxes paid at the point of destination when goods are still at the first point of entry. “Upon completion, we’re hoping to see not only faster, smoother trade flows but greater trade volumes passing through the region in the near future via this secure, cost-effective gateway,” Chan was quoted as saying.

In October last year, the United Nations University said that high costs of compliance and lengthy border clearing times were still obstructing the development of the customs territory.

Read original article

Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark Africa.